telematics

Question 1

Define usage based insurance

Answer 1

1. auto insurance based on how far, where, how , when drive (location, time, speed, acceleration, turning, hard-brake, cell phone use)

Question 2

Define telematics

Answer 2

information technology to transfer information

Question 3

Benefits of telematics to consumers (4)

Answer 3

availability: accurate pricing → more companies offer auto coverage

affordability: discount to good drivers

consumer control: drivers control driving habits

faster claims settlement: device has accident info

Question 4

Benefits of telematics to insurer (5)

Answer 4

1. accurate pricing
2. take on more policies
3. retain better risks
4. incentivize better driving
5. faster claims settlement – device has accident info

Question 5

Benefits of telematics to society (6)

Answer 5

1. less traffic
2. less pollution
3. less accidents
4. less infrastructure costs
5. less rate subsidies - lows risks don’t subsidize high risks as much
6. fewer uninsured drivers

Question 6

UBI concerns DTO-PIC

Answer 6

1. Data credibility & manipulation (thin data in beginning + hacking)
2. Transparency (consumers don’t understand how their data is used)
3. Oversight (regulation)
4. Privacy (of personal data)
5. Income Level (poor need cell phone?)
6. Cost (of device)

Question 7

Adv vs disadv of 4 telematics devices

Answer 7

1. Dongle (low cost vs old vehicles dont have port)
2. Smart phone (low cost vs low data quality)
3. Black box (most reliable vs most $expensive$)
4. Embedded (customer relationship vs $ubscription based like on-star)